When Income Levels in the Rest of the World Increase

question 93

Multiple Choice

When income levels in the rest of the world increase, what is the effect on the home TB?

• A) It decreases because of expenditure switching.
• B) It decreases because of an increase in imports.
• C) It increases because of an increase in exports.
• D) It increases because of expenditure switching.

---

Definitions:

Insurance Premiums

Payments made to an insurance company in exchange for coverage, which can be due monthly, quarterly, or annually.

Straight-life Policy

A type of life insurance policy where premiums are paid throughout the policyholder's lifetime, with benefits paid out upon death.

Maximum Loan

The largest amount of money that one can borrow from a lender under specified terms.

Insured

An insured individual is someone who is covered under an insurance policy, protecting them against certain risks or losses.